Former Sybase Chief to Take on BlackBerry Turnaround

BlackBerry Ltd.’s new chief brings a track record of turning around database software maker Sybase Inc. and close ties with private-equity tech-sector investors.

The Canadian smartphone maker said Monday John Chen will be its executive chairman, replacing Barbara Stymiest, the company’s non-executive chairwoman, who remains on the board. Mr. Chen will also replace outgoing Chief Executive Thorsten Heins until a permanent chief executive is hired.

Once the leading smartphone maker, the Waterloo, Ont.-based company is now an industry has-been despite Mr. Heins’ efforts to revive the company with the launch earlier this year of two new phones. Both devices failed to make a significant dent in the market, now dominated by rivals including Apple Inc. and Samsung Electronics Co.

It’s far from certain BlackBerry will fare better under Mr. Chen. The company’s decision to issue convertible debt ends the company’s efforts to sell itself, at least for the time being.

In 1998, Mr. Chen took over the role of chief executive and chairman of Dublin, Calif.-based Sybase at a time when the software maker lacked a cohesive strategy to fuel growth. Years later, Germany’s SAP AG agreed to acquire Sybase for $5.8 billion.

“BlackBerry is an iconic brand with enormous potential – but it’s going to take time, discipline and tough decisions to reclaim our success,” Mr. Chen said in a statement Monday.

Mr. Chen is also a special adviser to Silver Lake Partners, a U.S.-based private equity firm with $20 billion of assets under management and committed capital. Silver Lake has partnered with Dell Inc. founder and Chief Executive Michael Dell to acquire the computer maker in a $25 billion buyout.

Mr. Chen’s work with Silver Lake is bound to raise questions among investors about potential partnerships he could help BlackBerry forge. A Silver Lake spokeswoman declined comment.

The Wall Street Journal reported Monday that the likes of International Business Machines Corp. and Hewlett-Packard Co. had previously been interested in partnering with BlackBerry, but Mr. Heins and the board rejected those prospects in favor of focusing on the launch of new smartphones and a new operating system.

That strategy has largely failed suggesting partnerships may now become more of priority for BlackBerry.

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